Furniture & Homeware Unit Economics Calculator
High-ticket furniture looks great at gross revenue level and in ad platform reports thanks to stronger AOVs. But the unit economics can be brutal. Heavy goods shipping, white-glove delivery costs, damage write-offs, and BNPL dependency can silently destroy a margin that on the surface, looked healthy.
What This Calculator Outputs
Contribution Margin Waterfall
Full breakdown from gross revenue to net profit, including delivery and BNPL costs
Breakeven ROAS (3 Levels)
CM1 (gross), CM2 (contribution) and CM3 (variable) breakeven thresholds
Per-Unit Profitability
COGS, variable profit and net profit per kept order: the number that actually matters
Volume Sensitivity
See how profit changes across order volumes and find your fixed-cost leverage point
Who This Is For
As a furniture Google Ads consultant, I built this tool to help UK furniture D2C founders, CMOs, heads of growth, and e-commerce finance leads who need to understand the true per-order economics of selling high-AOV products direct to consumer. It's particularly useful if you're:
- Sense-checking whether the ROAS targets set in Google Ads actually reflect the cost structure of high-AOV, high-delivery-cost orders, rather than a margin figure pulled from your product sheet
- Running a contribution margin review that needs to properly account for delivery, BNPL fees and write-off costs alongside COGS
- Modelling how a change in delivery partner, delivery model or average ticket size would affect your per-order profitability
- Preparing investor or board materials that require a defensible, fully-loaded unit economics model
Kiezo Growth
Build Your Furniture Unit Economics Model
Answer a few questions about your business and we'll pre-load the calculator with your real numbers. Takes 2–3 minutes. Skip anything you don't know — we'll use sensible benchmarks in its place.
Returning user? Upload your saved config to reload your numbers instantly — no need to go through the questions again.
Could not read that file. Please use a saved Kiezo config JSON.
Let's start with your sales numbers.
This model works on a per-unit or per-SKU-range basis. Furniture businesses often carry product lines with very different margin profiles — a sofa and a dining table will have different AOVs, different cost structures, and different purchase cycles. Model them separately rather than blending across ranges, or the output won't be actionable for either.
Any field you leave blank will use a benchmark default. You'll see exactly which defaults were applied when you reach the calculator.
How many units do you sell per month?
Leave blank → benchmark default: 500 units/month
What is your full-price average order value?
Enter your AOV before any discounts are applied
£
Leave blank → benchmark default: £1,500
On average, what discount do customers get?
Across sale periods, promo codes and offers — if none, enter 0
%
Leave blank → benchmark default: 10%
What does it cost to make or buy the product?
What percentage of your selling price is the cost to make or buy the product?
This is your COGS — e.g. if your full-price AOV is £100 and the product costs you £35, enter 35
%
Leave blank → benchmark default: 40%
Tell us about your returns.
What percentage of your orders are returned?
Use your last 90-day return rate if available — if unsure, the UK D2C average is around 20%
%
Leave blank → benchmark default: 20%
What does it cost you to process each returned item?
Include postage labels, re-inspection and re-packaging — not the refund itself
£
Leave blank → benchmark default: £20.00 per return
Of the units returned, what percentage can't be resold and are written off?
If most stock comes back resaleable, enter a low number. If much of it is damaged or unsellable, go higher
%
Leave blank → benchmark default: 10%
How much does it cost to get orders out the door?
What is your average shipping cost per unit dispatched?
Your courier cost per parcel — not what you charge the customer
£
Leave blank → benchmark default: £50 per unit
What do you pay per month for warehousing and fulfilment?
Enter only the portion attributable to this product or range — leave at 0 if you fulfil in-house with no direct cost
£
Leave blank → benchmark default: £1,000/month
Payment processing and BNPL fees.
What percentage does your payment gateway charge per transaction?
Stripe is typically 1.4–2.9%. Check your dashboard if unsure
%
Leave blank → benchmark default: 2%
What percentage of your customers pay via BNPL — Klarna or similar?
If you don't offer BNPL, enter 0
%
Leave blank → benchmark default: 20%
What fee does your BNPL provider charge you per transaction?
Klarna typically charges merchants 2.99–5.99%. Check your provider agreement
%
Leave blank → benchmark default: 6%
What are you spending to acquire customers?
How much do you spend on paid acquisition per month, for this SKU/range?
Include the portion of agency fees, creative production, and attribution tooling attributable to this SKU or range — not your entire business spend. Platform media spend alone is acceptable, but will produce a less complete NCAC than your true all-in cost of acquisition.
£
Leave blank → benchmark default: £10,000/month
For NCAC to be accurate, your new customer count must come from your back-end data — Shopify orders, your CRM, or your order management system. Platform-reported new customer figures (Google Ads, Meta) overcount: they use cookie and device signals rather than your actual customer database, and they claim credit across channels simultaneously. Furniture's long consideration cycle — where a customer may click an ad weeks or months before converting — makes platform figures especially unreliable in this category. Pull the number from your back end, not your ads dashboard.
How many new customers did that spend acquire?
Most brands track this monthly, but use whatever period matches your acquisition spend figure above. Pull from Shopify, your CRM, or your order management system — not your ads platform. Leave at 0 if you don't track this yet — it unlocks your NCAC figure.
Leave blank → benchmark default: 0 (NCAC not calculated)
One last one — fixed overhead.
What are your monthly fixed costs attributable to this product or range?
Salaries, software, rent, agency fees — only include what you'd apportion to this SKU or range. Leave at 0 to evaluate on contribution margin only
£
Leave blank → benchmark default: £2,000/month
Google Ads For Furniture Brands
Get Your Furniture Strategy Right
The Google Ads for Furniture Brands Hub brings together the strategy guide, the unit economics calculators and the profit-first FAQs, so you can structure your account around how premium furniture is actually bought and sold.
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